Posts with tag: Welsh landlords

ARLA Propertymark Responds to Welsh Consultation on Lettings Fee Ban

Published On: September 4, 2017 at 9:02 am

Tags: letting agent fees,lettings fee ban,Wales,Welsh landlords

ARLA Propertymark (the Association of Residential Letting Agents) has responded to the Welsh government’s consultation on its proposed lettings fee ban.

The consultation, which launched on 19^th July, proposes a ban on letting agents charging fees to tenants.

ARLA Propertymark Responds to Welsh Consultation on Lettings Fee Ban

It now looks likely that tenant fees will be banned throughout the UK; Scotland already has a ban in place, while the English government has committed to introducing a ban, which is likely to take effect next year. Northern Ireland also had a consultation on a proposed ban, which closed in April.

The consultation in Wales follows pressure from the likes of housing charity Shelter. In March 2016, Shelter Cymru published the report Letting go: why it’s time for Wales to ban letting agents’ fees.

It said that there were large discrepancies between fees charged to tenants, ranging from a low of £39.99 to £480. The report also found that one in three tenants who use a letting agent paid over £200 in fees to begin a tenancy.

The consultation document says: “In terms of reforming the private rental sector, the Welsh government has already gone much further than other parts of the UK in regulating landlords and letting agents through Rent Smart Wales.”

This is a compulsory scheme by which all landlords must be registered and all letting agents must be licensed. Many landlords will also have to be licensed, based on whether they perform property management tasks.

The consultation says that while letting agents are required to display their fees, a mystery shopping exercise found that half did not.

The Welsh government believes that many fees charged to tenants are “unjustified and arbitrary”.

The consultation asks a number of questions, aimed at determining “which fees, if any, are justifiably being charged to tenants”.

It also seeks information on fees paid by landlords to letting agents and the possible consequences of a fee ban.

David Cox, the Chief Executive of ARLA Propertymark, responds to ARLA’s submission to the consultation: “Any move to ban letting agents fees in Wales will cause unprecedented damage to the rental sector across the country. Independent analysis commissioned by ARLA Propertymark, following the UK Government’s announcement of its own ban, revealed that if a full ban was introduced, rents will increase by £103 per year, which will only serve to financially punish long-term tenants.

“In our submission, ARLA is calling for fees associated with referencing to be left out of any ban. Right to Rent checks will soon be a service that agents in Wales will be required to undertake by law, so it is only right that agents should be able to recover the associated costs, given the time and resources needed to carry out such checks.”

The consultation closes on 27^th September.

It can be found here: https://consultations.gov.wales/sites/default/files/consultation_doc_files/170721_consultation_feeschargedtotenants_en_1.pdf

RLA Wales Warns of Forthcoming 3% Surcharge in New Property Tax

Published On: January 10, 2017 at 9:36 am

Author: Em Morley

Categories: Property News

Tags: Land Transaction Tax,Stamp Duty,Wales,Welsh landlords

The Residential Landlords Association (RLA) of Wales has warned its government against forthcoming legislation changes that will include a 3% surcharge on additional properties.

RLA Wales Warns of Forthcoming 3% Surcharge in New Property Tax

From April 2018, Land Transaction Tax (LTT) will replace the UK’s Stamp Duty Land Tax (SDLT) in Wales. Like Stamp Duty, LTT will be payable when someone buys or leases a building or land over a certain price.

Following a consultation carried out across Wales between July and August 2016, the higher rate of tax for additional property purchases that was introduced in the UK last year will also apply in Wales as part of LTT legislation.

The RLA Wales is concerned that the 3% surcharge will threaten the supply of rental properties in the country, which could make it more difficult for families and the homeless to access rental accommodation, at a time when it is increasingly required.

Government statistics show that in 2015-16, a total of 6,891 households were classed as homeless and entitled to help securing accommodation in Wales. Of this figure, 3,534 households were found accommodation, with almost half (1,722) housed in the private rental sector.

Additionally, of 3,108 households that were threatened with homelessness, 35% (1,077) were living in the private rental sector.

The RLA is calling on the Welsh Assembly to scrap the 3% surcharge when landlords invest in housing that will add to the net supply of homes, for example, new build properties or bringing empty homes back into use.

Wales’ LLT legislation will be broadly consistent with Stamp Duty, using the underlying structure and mirroring key elements, in order to provide stability and reassurance to businesses and the property market.

Decisions on tax rates will be made closer to April 2018, the Assembly reports, in order to reflect economic conditions at the time.

The bill was introduced to the National Assembly on 12^th September 2016. It is believed that the bill will receive royal assent by spring this year.

Just One Week to Rent Smart Wales

Published On: November 16, 2015 at 2:05 pm

Author: Em Morley

Categories: Landlord News

Tags: landlord licensing scheme,landlords in Wales,Rent Smart Wales,Welsh landlords

Just One Week to Rent Smart Wales

It is just one week until the Welsh government launches its Rent Smart Wales scheme.

The new regime will enforce compulsory licensing and registration of all landlords and letting agents in Wales. The Welsh government has released a code of practice to help landlords and agents stick to the law.

All landlords and agents that belong to the scheme must adhere to the requirements of the code or risk losing their license. This means that they would be unable to let or manage any residential properties.

The first part of the code sets out what landlords and agents must do to comply with the law.

The second contains information on what can be done to raise standards above the minimum level required by the new scheme.

Find the code of practice here: http://gov.wales/topics/housing-and-regeneration/housing-supply/renting/privately/landlord-and-agent-registration/rent-smart-code-of-practice/?lang=en

Welsh Landlords Receive Water Bill Notification

Published On: December 19, 2014 at 11:56 am

Author: Em Morley

Categories: Property News

Tags: Welsh landlords,Welsh water bill

The Welsh Government has enforced new regulations under the Water Industry Act, which will come into force.

The rules will require all landlords with rental properties in the Dŵr Cymru Welsh Water, and Dee Valley Water areas to share tenant information with their water company. If they do not provide the details, they will be equally liable for any of their tenant’s water debts.

The majority of places affected by the rules will be within Wales, although other parts, such as Cheshire, Herefordshire, Shropshire, and Gloucestershire, may be contained within the scheme. The regulations concern owners who do not live in their property, and therefore do not include homeowners who rent out rooms in their houses.

Landlords must provide the following information of their tenants to the water company: full name, date of birth, the start date of the tenancy, and the property address.

Welsh Landlords Receive Water Bill Notification

These details must be submitted within 21 days. Landlords with existing tenants will have to provide the information by 21^st January 2015, and for any new tenancy agreements, the material must be given within 21 days of the beginning of the lease.

If landlords do not provide the information, they will be jointly accountable for any water supply and sewerage charges.

The Welsh Government is attempting to reduce the amount of people who are in debt to their water supplier, through the Tackling Poverty Action plan.

All customers that pay their bills cover the cost of those that do not, and in Wales, this can add on £15-£20 a year to every bill.

The system will try to help tenants budget effectively, and direct them to suitable information for support in paying their bills, for example, social tariffs, or assistance funds.

For landlords, the simplest method of observing the regulations is to submit the information through Landlord TAP.

Water UK has created Landlord TAP, a national website that passes on tenant information to water and sewerage firms. Landlords and letting agents can use the forms on the site to deliver the details to the company. They will then receive a transaction receipt.